Gazumping is twice as prevalent in London than the rest of England, according to new research from Market Financial Solutions (MFS).
The specialist lender commissioned an independent survey of 2,000 UK adults. It found that of all those who had bought a property in England and Wales in the past decade, 31% had been gazumped. However, among those who bought in London, the figure rose to 62%.
Gazundering – when a buyer suddenly lowers their offer late in the process once the seller is committed – was also far more common in the capital. While 21% of homebuyers in England and Wales admitted to having gazundered a seller in the past, almost half (47%) of London buyers said the same.
MFS’s research showed that 68% of homebuyers feel the UK property market is too competitive, with the figure jumping to 79% among Londoners.
79% would like to see the government take steps to outlaw gazumping in England and Wales, as they have already in Scotland.
Paresh Raja, CEO of MFS, said: “The highly competitive nature of the property market does, unfortunately, lend itself to questionable tactics in some quarters. Gazumping is a prime example, and the data clearly shows that this issue is far more prevalent in London than the rest of the country.
“Estimates suggest that homebuyers lose an average of £2,700 when a purchase falls through. Clearly, gazumping carries serious financial and emotional ramifications.
“Delays in securing a mortgage or loan is a common factor in people being gazumped. So, preparation is key – sourcing the right lender and product ahead of time, and working with service providers who can act quickly, could prove crucial in ensuring a deal is completed with no complications.”
